CY09 portfolio

[weijian]

So yes, a bear market and severe market plunge will test everyone's process, and also everyone's mettle and resolve.

IIRC, VB was incepted in 2010 and its 'only major' crisis to date was the Euro and US fiscal fiasco that seemed to be like ages ago. Looking forward to the interesting REAL time case studies in VB that will present itself when depression hits (especially on what happens to those who are adamant to be 100% invested at all times as their stock picking/diversification or whatever competitive moat they believe to possess, will provide the hedge...in other words, my question is 'what would be your emotional hedge?)

I am probably one of those highlighted, who are "adamant to be 100% invested"

I have gone thru the 2008/2009 cycle, with portfolio value slumped to half. I am glad I survived, and have a good feel on what a crisis like

Emotional hedge? Good point raised...Hmm...

I slept well in 08/09 crisis too. But on hindsight, i think it was more because of ignorance rather than 'sage-like' confidence. From then to now, personally, alot of things have changed. For one, my own portfolio size has tripled in absolute amount with all the capital injection in the last 6 years - It is harder to sleep well with a 50% lost on 100dollars, over a 50% loss on 10dollars. Pride has exponentially multipled and so I thought it is really easy now for me to fall into what Musicwhiz termed as the "hot-cold empathy" gap (hey! all the books and training i have had, is going to hold up when the Fat Lady sings!) Finally, external conditions like the amt of leverage and commitment levels (wife, family, kids, elderly parents, expensive wine) have all changed over the last 7 years.

In other words, i consider the next crisis a whole new ball game, even though i had survived the last one in 2008. Of course, some fundamentals principles remain but i recognize that the risk is always in the things that i have not prepared for/thought of.